AUSTIN, Texas–A trio of new studies offers some insights on the consumers most satisfied with their PFIs, how stimulus checks have been spent, and how spending habits are changing.
In terms of who is happiest with their financial choices, a new study conducted by Kasasa found those who say their primary financial institution (PFI) is a community bank or credit union are more likely than those whose PFI is a megabank to say they are satisfied with the service at their primary financial institution during the COVID-19 pandemic (65% versus 54%). The 2020 study was conducted online by The Harris Poll on behalf of Kasasa, garnering responses from 1,038 U.S. adults age 18 and older.
The company reported that in addition, the survey found those who say their PFI is a community bank or credit union are more likely than those whose PFI is a megabank to say they are extremely satisfied with the service at their primary financial institution during the current COVID-19 pandemic (30% versus 20%).
According to the company, “This is good news for community financial institutions, especially as consumers make plans to open new accounts despite the pandemic. In fact, Kasasa’s latest survey revealed that over the next 30 days, 44% of U.S. consumers plan to make financial or banking transactions, including opening a savings or checking account (15%) and applying for a credit card (11%).”
Study on Use of Checks
Meanwhile, a separate study conducted by Kasasa offers a look at home consumer said they have used their coronavirus-related stimulus checks.
While household expenses and necessities were a top priority for many consumers, saving was still of interest. The survey found over one-quarter (27%) of consumers planned to put their stimulus check in savings accounts.
Meanwhile, 31% of consumers will make payments towards bills like utilities and insurance and 25% of consumers will use it to cover day to day necessities, the company said.
The 2020 study was conducted online by The Harris Poll on behalf of Kasasa, garnering responses from 1,038 U.S. adults ages 18 and older.
“To say that we’re in unchartered territory would be an understatement,” said Gabe Krajicek, CEO of Kasasa. “The current pandemic has created a hardship for many individuals, prompting measures like the $2 trillion economic relief package to help offset losses. While some consumers plan to use their stimulus checks on needed expenses, our recent survey shows that many are saving that money, perhaps because they do not need it now or they’re planning to use it later if needed.”
Kasasa said data from Google Trends further proves consumers’ desire to save. Searches for “open bank account online” maintained its high volume in April, with the highest search demand Google has ever seen for this search term. In addition, searches for "open checking account online" saw a sharp increase to its highest search demand since June 2018, the company noted.
How Consumers are Paying
In a different survey conducted by Kasasa, meanwhile, findings show how consumers are paying for purchases during the current coronavirus crisis. The research highlights the top three areas credit card and debit card were used over the month prior to the April 2020 study, which was conducted online by The Harris Poll on behalf of Kasasa, garnering responses from 1,038 U.S. adults ages 18 and older.
According to the study, credit card usage by consumers over the last 30 days (as of April 13-14) was largely dominated by in-store grocery purchases among 51% of consumers, followed by gas with 45%, and necessities purchased online with 33%. Debit card usage followed a similar trend, with 44% of consumers using debit cards to make purchases at in-store groceries, followed by gas with 32%, Kasasa said.
However, different from credit card purchases, the third top area for debit card use was take-out delivery by 23% of consumers.
“Trends in consumer spending and saving have seen a significant shift since the start of the pandemic, and now that the U.S. has officially entered a recession, habits will continue to change drastically,” said Krajicek.